SE Houston Owner Slides in $375,000 End-of-Year Sale

HOUSTON-A wholesale food distributor parts with $375,000 or $12 per sf for a 30,000-sf industrial building in Houston’s southeast submarket.

Richard Finnerman of the Houston office of NAI Partners Commercial represented locally based All American Trading in the acquisition of the single-user building at 6622 Supply Row. Seller Jack Muhlstein was looking to lease instead of own, Finnerman tells GlobeSt.com. Muhlstein’s company makes awnings and window shades. It will be relocating to East Park, just off Homestead and the North Loop.

Finnerman says All American Trading’s new spot came with all the right stuff: 18-foot clear heights, masonry exterior and dock-high styling. The structure is a prime catch since it’s located inside the Loop, a high-demand location ideally suited for distribution purposes. The building is tucked between Polk Street and Wayside Drive.

Finnerman has noticed industrial space in the city’s east-southeast sector provides affordable space and no compromises. In southwest Houston, he says the price for a building comparable to All American Trading’s would be much higher. Thus, the east-southeast corridor is fertile ground for industrial users looking to buy.

Recently published statistics show there is about 38.8 million sf of industrial product in the southeast submarket. Still, vacancy is just 2.41%. The submarket has 824,319 sf under construction. The southeast’s gross lease rates average 27 cents per sf to 35 cents per sf for warehouse distribution in comparison to the southwest’s 40 cents per sf to 60 cents per sf. Price differentials also exist for flex-service center space and manufacturing space between the two submarkets, with the southeast coming in cheaper.